This course gives an overview of the changing regulatory environment since the 1997 Asian and 2008 global financial crisis. Following these two major crises, governments around the globe enacted a set of far-reaching new financial regulations that are aimed towards safeguarding financial stability. However, banks find it increasingly difficult to be profitable in this new regulatory environment. Technology, at the same time, has taken important leaps forward with the emergence of sophisticated models of artificial intelligence and the invention of the blockchain. These two developments fuel the emergence of fintech companies around the world.
This course discusses fintech regulation in emerging markets using case studies from China and South Africa. The course pays special attention to the socioeconomic environment in emerging markets, as well as to political risk as a major source of uncertainty for fintech entrepreneurs. Peer-to-peer lending and remittances are used as leading examples for fintech innovation in emerging markets.

De la lección

Post-crisis regulations

This week we dive into detail about financial systems - with a focus on how banks work and on banking regulation. Using the Great Depression of the United States as starting point, I describe what happened to cause the collapse of banks and the introduction of the post-depression financial regulations. The new financial regulations included the establishment of international financial institutions which control current monetary policies. Being familiar with the current financial regulatory framework and where it comes from provides the basis for understanding the disruptions from the fintech innovations we will be covering next week.